IMPACT OF ORGANIZATIONAL CULTURE ON ORGANIZATION PERFORMANCE
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IMPACT OF ORGANIZATIONAL CULTURE ON ORGANIZATION PERFORMANCE
Chapter one
INTRODUCTION
1.1 Background for the Study
There are various sorts of organisations that exist to fulfil distinct purposes and meet the diverse needs of the organization’s stakeholders. The type of organisation depends on its ownership, shape, and size. Accounting firms, schools, retail stores, municipal governments, airports, vehicle manufacturing, hospitals, hotels, and many other businesses are examples.
\These organisations are divided into two categories: public and private organisations. Whatever sort or category an organisation is, it exists to execute specific activities in order to achieve predetermined goals and deliver the desired pleasure to its owners and clients. Individuals cannot attain the specified objectives on their own and must work together to achieve them.
Members and workers of an organisation can produce a concerted and synergistic influence by working together and taking action. According to Gibson, Ivancevich, Donelly, and Konopaske (2005), organisations have distinct personalities that are mostly moulded by their top executives. For example, a despotic and autocratic leadership team can generate a culture of dread.
As a result, the way a leader or top executive manages his or her people determines how the employees will react to work in order to reach the business’s goal of profit.
Organisational performance is an organization’s ability to execute its mission through effective management, strong governance, and a consistent commitment to achieving defined goals throughout time (Stafford & Miles, 2013).
Denison, Haaland, Goelzer, and Yilmaz (2008) define performance as the achievement of financial and non-financial goals that allow an organisation to remain viable and sustainable in the short and long term.
High organisational performance is attained when all aspects of an organisation collaborate to accomplish desired goals (Ansoff, 1987). Scholars such as Ansoff (1987), Schein (2007), and Rieley and Clarkson (2001) first introduced the concept of organisational culture in the US in the mid-1970s.
These researchers contended that organisational culture specifies the criteria that enabled Fortune 500 businesses in the United States, United Kingdom, and other developed countries to improve performance and remain competitive in the face of intense globalisation.
As a result, management theorists have long believed that company culture and organisational performance are inextricably linked. According to Mullins (1999), an organization’s culture influences its performance. According to Flamholtz and Kannan-Narasimhan (2005), the impact of organisational culture on the bottom line is crucial for influencing managerial practice and, consequently, financial performance.
McShane and Von Glinow (2005), in accordance with the preceding perspectives on the relationship between organisational culture and organisational performance, had a somewhat different perspective, stating, “Can firms with strong cultures have higher performance? Not necessarily! “Studies have found only a modestly positive relationship between culture strength and success.”
With the aforementioned opinions and comments of management theorists, it is easy to deduce that organisational culture has a relationship with job performance and, as a result, has a favourable impact on an organization’s overall performance.
Researchers who have investigated the impact of organisational culture on employees report that it gives and encourages a sense of stability. Gibson et al. (2003) highlighted two key components of culture: strong culture and weak culture.
According to Gibson, a strong culture is defined by employees sharing core values; the more employees share and accept the core values, the stronger the culture and the more influential it is on behaviour; and the more employees do not share and accept the core values, the weaker the culture and the less influential it is on behaviour.
Mc Shane et al. (2005) endorse Gibson et al’s reasoning and go on to state that a weak culture occurs when dominant ideals are short-lived and held mostly by a few people at the top of an organisation.
1.2 Statement of Problem
Organisations in Nigeria have implemented various changes throughout the years, necessitating a review of the management structure, the addition of mandates and functions, and substantial changes in organisational culture. Stafford and Miles (2013) stated that an organization’s ability to govern its performance is dependent on its culture.
Literally, this means that an organisation must review its own structure, beliefs, values, and assumptions that inform its method of operating. As a result, the organisation will be able to not only remain relevant, but also discover precipitous characteristics inherent in its culture that are beneficial to performance and detrimental to performance.
1.3 Object of the Study
The primary goal of this study is to determine the impact of organisational culture on organisational performance. Specifically, the study attempts to:
1. Examine the effect of organisational culture on the performance of organisations in Nigeria.
2. Determine the extent to which organisational culture influences customer service
3. Examine how organisational culture affects internal business procedures.
1.4 Research question
1. Does organisational culture have any impact on the performance of organisations in Nigeria?
2. To what extent does organisational culture influence customer service?
3. To what extent does organisational culture affect internal business procedures?
1.5 Research Hypothesis.
Ho: Organisational culture has no impact on the success of organisations in Nigeria.
Hello, there is an impact of organisational culture on the performance of organisations in Nigeria.
1.6 Significance of the Study
This research will be useful to both employees and managers in various Nigerian organisations. It will assist employees in gaining knowledge and insight, as well as raising awareness of the extent to which they are willing to accept change and thus derive as many benefits as possible from the change initiatives that the organisation is implementing.
To management, an assessment of the organisational culture was critical in finding the fundamental cause of the issues impeding employee performance. The study’s findings will help senior management in various organisations, as well as the human resource management department
comprehend the contribution of organisational culture (at both the overall and component levels) to organisational performance. In this sense, the study findings would be valuable in analysing the existing change strategies to ensure that the modifications resulted in substantial improvements for the organisation.
1.7 Scope of Study
This research will thoroughly examine the concepts and literature connected to organisational culture and performance, as well as analyse the impact of the former on the latter.
1.8 Delimitation of the Study
Obtaining funding for general research projects will be difficult during the course of studies. Correspondents may also be unable or unwilling to complete and submit the questionnaires provided to them.
However, it is hoped that these limits will be addressed by making the best use of existing materials and devoting more time to study. As a result, it is strongly thought that despite these constraints, their impact on this research report will be small, allowing the study’s purpose and significance to be achieved.
1.9 Definition of Terms
Organisational culture refers to attitudes and behaviours that “contribute to the unique social and psychological environment of an organisation.”
Organisational performance is the actual output or results of an organisation as compared to its expected outputs.
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